Special Pension Scheme for Employees in Industrial Establishments Controlled by the State
Fonds spécial des ouvriers des établissements industriels de l’État, FSPOEIE
Coverage
Mandatory insurance
- Persons employed in an industrial establishment controlled by the state (according to the administrative law, these employees are considered as public agents with a special status).
Financing
General finances
- Mainly PAYG-financed from insurance contributions, with public subsidies.
Contribution rates
- Fixed share of monthly gross earnings; without contribution assessment ceiling.
- Contributions are shared between the employees (10.83%) and the employer (35.01%) (in 2019).
Taxation of contribution payments
- Tax exemptions for insurance contributions.
Administration
- The FSPOEIE is administrated by the Deposit and Consignment Office (Caisse des dépôts et des consignations).
Qualifying Conditions
Qualifying conditions for public servants
- The statutory (minimum) retirement age varies according to the category of the employee: for ‘sedentary workers’, it is 62; for workers in an arduous job, it is 57; a minimum insurance duration of 2 years is required.
- Full-rate pension: the insured person must have a minimum contribution record of 172 quarters (for persons born after 1973).
Early retirement
- Available for persons who have a long career (especially when they started to work at the age of 17), without negative adjustments to pension benefits.
Deferred retirement
- A person can be asked to retire when reaching the age of 65.
Combining employment & retirement
- Under certain conditions, the person can combine a professional activity in the public or the private sector with the claiming of pension benefits.
Benefits
Pension benefits
- Primarily based on last earnings prior to retirement and years of service.
- Maximum amount: the full pension is the maximum amount of the pension benefits, which is 75% of the last earnings of the public servant.
- Minimum amount: similar to the minimum wage, i.e. around EUR 1,200 per month (lower amounts are possible under certain conditions) if the pension benefit is below a minimum level and if qualifying conditions for full-rate old age pension are met.
Benefit calculation
- The level of income which the person receives for at least six months before the retirement (traitement incidiaire); if the employee receives a salary, then the reference for the calculation will be the hourly wage multiplied by 1759 (number of working hours in a year).
- The ratio between the period of service and the required period for a full pension.
- Adjustments: yearly adjustments of benefits, indexed to prices.
Taxation and social security contributions
- Pension benefits are subject to income tax.
- Pension benefits are not subject to social contributions, except the CSG, CRDS and CASA.
Coverage
Financing
Administration
Qualifying Conditions
Benefits
Mandatory insurance
- Persons employed in an industrial establishment controlled by the state (according to the administrative law, these employees are considered as public agents with a special status).
General finances
- Mainly PAYG-financed from insurance contributions, with public subsidies.
Contribution rates
- Fixed share of monthly gross earnings; without contribution assessment ceiling.
- Contributions are shared between the employees (10.83%) and the employer (35.01%) (in 2019).
Taxation of contribution payments
- Tax exemptions for insurance contributions.
- The FSPOEIE is administrated by the Deposit and Consignment Office (Caisse des dépôts et des consignations).
Qualifying conditions for public servants
- The statutory (minimum) retirement age varies according to the category of the employee: for ‘sedentary workers’, it is 62; for workers in an arduous job, it is 57; a minimum insurance duration of 2 years is required.
- Full-rate pension: the insured person must have a minimum contribution record of 172 quarters (for persons born after 1973).
Early retirement
- Available for persons who have a long career (especially when they started to work at the age of 17), without negative adjustments to pension benefits.
Deferred retirement
- A person can be asked to retire when reaching the age of 65.
Combining employment & retirement
- Under certain conditions, the person can combine a professional activity in the public or the private sector with the claiming of pension benefits.
Pension benefits
- Primarily based on last earnings prior to retirement and years of service.
- Maximum amount: the full pension is the maximum amount of the pension benefits, which is 75% of the last earnings of the public servant.
- Minimum amount: similar to the minimum wage, i.e. around EUR 1,200 per month (lower amounts are possible under certain conditions) if the pension benefit is below a minimum level and if qualifying conditions for full-rate old age pension are met.
Benefit calculation
- The level of income which the person receives for at least six months before the retirement (traitement incidiaire); if the employee receives a salary, then the reference for the calculation will be the hourly wage multiplied by 1759 (number of working hours in a year).
- The ratio between the period of service and the required period for a full pension.
- Adjustments: yearly adjustments of benefits, indexed to prices.
Taxation and social security contributions
- Pension benefits are subject to income tax.
- Pension benefits are not subject to social contributions, except the CSG, CRDS and CASA.
Legal Basis: Decree of 5 October 2004 on Pension Schemes for Employees in an industrial establishment controlled by the state (Décret n°2004-1056 du 5 octobre 2004 relatif au régime des pensions des ouvriers des établissements industriels de l'Etat). Initially, cf. Law of 21 March 1928 on the reform of Pension Schemes for Employees in an industrial establishment controlled by the state (Loi du 21 mars 1928 portant réforme des régimes des ouvriers des établissements Industriels de l'État). See also two other laws: Loi n° 49-1097 du 2 août 1949 and loi n° 2003-775 du 21 août 2003.